Updated 3 months ago on . Most recent reply
Renting by the Room
Hi Everyone,
Looking for advice and/or experience with successes in offering furnished medium term room rentals, particularly those out of state. I'm really interested in class B/C properties in East Coast metro areas, Philly in particular but still researching. My goal is to maximize short-medium term cashflow by focusing on a single area and rolling over cashflow/personal funds into more units with the same by-the-room strategy. I work with housing disadvantaged populations, so I understand the unique and increased risks that are already present in class C neighborhoods and are compounded by renting rooms and am comfortable adopting this strategy to maximize monthly cash returns. I very much so understand the value of a knowledgable RE agent and gaining in-person insights about the neighborhoods. My specific questions for those who have had or seen success with a similar model are:
1. How did/are you finding good tenants? Traditional places like Zillow/Apartments.com/etc, boutique platforms like PadSplit/etc, or through a RE agent? (Likely more niche, but I'm also open to partnering with reputable CCBHCs or other mental health agencies to rent a unit specifically with barriers to housing).
2. Month-to-Month or Week-to-Week? I understand each has their pros/cons but interested in hearing your experience.
3. How much do you manage yourself? The things you outsource, is it because of time/expertise constraints or for ease of mind/management?
4. General recommendations/positive experiences. Either locations, RE Agents, Lenders, or combination of all 3! Happy to hear about other's success even if it doesn't match the areas I'm searching in currently (Northeast corridor, South, Midwest).
Also, if you don't have anything positive to add, feel free to spout your 2 cents about horror experiences or stories. Not afraid of getting holes blown through my plans, and very happy to have as much information at my disposal to make great decisions!